Schedule II-Condensed Financial Information Of Registrant

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule II-Condensed Financial Information Of Registrant

WellPoint, Inc. (Parent Company Only)

Balance Sheets

(In millions, except share data)	December 31, 2013		December 31, 2012
Assets
Current assets:
Cash and cash equivalents	$	1,174.5	$	588.1
Investments available-for-sale, at fair value:
Fixed maturity securities (amortized cost of $897.4 and $1,415.5)	900.4		1,425.9
Equity securities (cost of $52.6 and $26.7)	89.6		15.0
Other invested assets, current	1.9		1.6
Other receivables	35.6		37.7
Income taxes receivable	154.4		227.0
Net due from subsidiaries	893.4		—
Securities lending collateral	46.2		29.1
Deferred tax assets, net	11.8		7.9
Other current assets	183.1		145.7
Total current assets	3,490.9		2,478.0
Long-term investments available-for-sale, at fair value:
Equity securities (cost of $6.7 and $6.8)	6.7		6.8
Other invested assets, long-term	615.7		596.4
Property and equipment, net	148.3		110.2
Deferred tax assets, net	2.9		23.8
Investments in subsidiaries	35,516.2		35,462.2
Other noncurrent assets	152.3		218.9
Total assets	$	39,933.0	$	38,896.3
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	592.1	$	402.1
Security trades pending payable	28.9		17.7
Securities lending payable	46.2		29.1
Net due to subsidiaries	—		89.7
Current portion of long-term debt	518.0		—
Other current liabilities	213.4		214.6
Total current liabilities	1,398.6		753.2
Long-term debt, less current portion	13,548.6		14,145.9
Other noncurrent liabilities	220.6		194.5
Total liabilities	15,167.8		15,093.6
Commitments and contingencies—Note 5
Shareholders’ equity
Preferred stock, without par value, shares authorized—100,000,000; shares issued and outstanding—none	—		—
Common stock, par value $0.01, shares authorized—900,000,000; shares issued and outstanding: 293,273,830 and 304,715,144	2.9		3.0
Additional paid-in capital	10,765.2		10,853.5
Retained earnings	13,813.9		12,647.1
Accumulated other comprehensive income	183.2		299.1
Total shareholders’ equity	24,765.2		23,802.7
Total liabilities and shareholders’ equity	$	39,933.0	$	38,896.3

WellPoint, Inc. (Parent Company Only)

Statements of Income

	Years ended December 31
(In millions)	2013			2012			2011
Revenues
Net investment income	$	61.2		$	95.3		$	116.6
Net realized losses on investments	(83.2		)	(28.5		)	(17.9		)
Other-than-temporary impairment losses on investments:
Total other-than-temporary impairment losses on investments	(51.6		)	(15.3		)	(18.3		)
Portion of other-than-temporary impairment losses recognized in other comprehensive income	0.2			1.3			0.3
Other-than-temporary impairment losses recognized in income	(51.4		)	(14.0		)	(18.0		)
Other revenue	4.4			3.5			3.1
Total revenues	(69.0		)	56.3			83.8
Expenses
General and administrative expense	196.6			211.9			53.4
Interest expense	598.4			507.0			407.3
Loss on extinguishment of debt	145.3			—			—
Total expenses	940.3			718.9			460.7
Loss before income tax credits and equity in net income of subsidiaries	(1,009.3		)	(662.6		)	(376.9		)
Income tax credits	(369.7		)	(172.1		)	(207.0		)
Equity in net income of subsidiaries	3,129.3			3,146.0			2,816.6
Net income	$	2,489.7		$	2,655.5		$	2,646.7

WellPoint, Inc. (Parent Company Only)

Statements of Comprehensive Income

(in millions)	Years ended December 31
	2013			2012			2011
Net income	$	2,489.7		$	2,655.5		$	2,646.7
Other comprehensive (loss) income, net of tax:
Change in net unrealized gains/losses on investments	(294.7		)	189.9			20.6
Change in non-credit component of other-than-temporary impairment losses on investments	1.7			4.5			(0.7		)
Change in net unrealized gains/losses on cash flow hedges	3.0			0.1			(10.0		)
Change in net periodic pension and postretirement costs	172.7			(10.9		)	(119.8		)
Foreign currency translation adjustments	1.4			0.6			0.2
Other comprehensive (loss) income	(115.9		)	184.2			(109.7		)
Total comprehensive income	$	2,373.8		$	2,839.7		$	2,537.0

WellPoint, Inc. (Parent Company Only)

Statements of Cash Flows

(In millions)	Years ended December 31
	2013			2012			2011
Operating activities
Net income	$	2,489.7		$	2,655.5		$	2,646.7
Adjustments to reconcile net income to net cash provided by operating activities:
(Undistributed) distributed earnings of subsidiaries	(78.5		)	(432.0		)	399.3
Net realized losses on investments	83.2			28.5			17.9
Other-than-temporary impairment losses recognized in income	51.4			14.0			18.0
Loss on extinguishment of debt	145.3			—			—
Loss on disposal of assets	3.6			—			—
Deferred income taxes	(4.5		)	49.2			95.3
Amortization, net of accretion	25.2			23.2			3.1
Depreciation	45.7			13.1			0.3
Share-based compensation	146.0			146.5			134.8
Excess tax benefits from share-based compensation	(30.1		)	(28.8		)	(42.2		)
Changes in operating assets and liabilities, net of effect of business combinations:
Receivables, net	3.5			9.6			13.5
Other invested assets, current	(0.3		)	0.2			4.6
Other assets	42.3			(31.7		)	(52.0		)
Amounts due (from) to subsidiaries	(983.1		)	754.7			(497.2		)
Accounts payable and accrued expenses	111.8			(34.5		)	1.5
Other liabilities	(18.6		)	8.9			(0.9		)
Income taxes	83.9			(204.0		)	35.3
Net cash provided by operating activities	2,116.5			2,972.4			2,778.0
Investing activities
Purchases of investments	(1,964.3		)	(5,383.2		)	(2,681.7		)
Proceeds from sales, maturities, calls and redemptions of investments	2,443.3			5,554.5			3,689.6
Settlement of non-hedging derivatives	(109.8		)	(59.8		)	(96.6		)
Capitalization of subsidiaries	(121.2		)	(6,085.1		)	(832.1		)
Changes in securities lending collateral	(17.0		)	73.8			17.3
(Purchases) sales of property and equipment, net	(87.4		)	(117.1		)	2.3
Other, net	(18.9		)	(114.4		)	(49.6		)
Net cash provided by (used in) investing activities	124.7			(6,131.3		)	49.2
Financing activities
Net (repayments of) proceeds from commercial paper borrowings	(191.7		)	(229.0		)	463.7
Proceeds from long-term borrowings	1,250.0			6,468.9			1,097.4
Repayments of long-term borrowings	(1,245.0		)	(800.0		)	(700.0		)
Changes in securities lending payable	17.1			(72.7		)	(17.3		)
Changes in bank overdrafts	71.8			30.5			(66.9		)
Premiums paid on equity options	(25.8		)	—
Repurchase and retirement of common stock	(1,620.1		)	(2,496.8		)	(3,039.8		)
Cash dividends	(465.9		)	(380.9		)	(369.8		)
Proceeds from issuance of common stock under employee stock plans	524.7			110.8			245.0
Excess tax benefits from share-based compensation	30.1			28.8			42.2
Net cash (used in) provided by financing activities	(1,654.8		)	2,659.6			(2,345.5		)
Change in cash and cash equivalents	586.4			(499.3		)	481.7
Cash and cash equivalents at beginning of year	588.1			1,087.4			605.7
Cash and cash equivalents at end of year	$	1,174.5		$	588.1		$	1,087.4

1. Basis of Presentation and Significant Accounting Policies

In the parent company only financial statements of WellPoint, Inc., or WellPoint, WellPoint’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of the subsidiaries. WellPoint’s share of net income of its unconsolidated subsidiaries is included in income using the equity method of accounting.

Certain amounts presented in the parent company only financial statements are eliminated in the consolidated financial statements of WellPoint.

Certain prior year amounts have been reclassified to conform to the current year presentation.

WellPoint’s parent company only financial statements should be read in conjunction with WellPoint’s audited consolidated financial statements and the accompanying notes included in this Form 10-K.

2. Subsidiary Transactions

Dividends from Subsidiaries

WellPoint received cash dividends from subsidiaries of $3,046.5, $2,935.1 and $2,915.9 during 2013, 2012 and 2011, respectively.

Dividends to Subsidiaries

Certain subsidiaries of WellPoint own shares of WellPoint common stock. WellPoint paid cash dividends to subsidiaries related to these shares of common stock in the amount of $17.9, $13.8 and $12.0 during 2013, 2012 and 2011, respectively.

Investments in Subsidiaries

Capital contributions to subsidiaries were $121.2, $6,085.1 and $832.1 during 2013, 2012 and 2011, respectively.

Amounts Due to and From Subsidiaries

At December 31, 2013 and 2012, WellPoint reported $893.4 due from subsidiaries and $89.7 payable to subsidiaries, respectively. The amounts due to or from subsidiaries primarily include amounts for allocated administrative expenses or cash held overnight at the parent level resulting from daily cash management activities. These items are routinely settled, and as such, are classified as current assets or liabilities.

3. Derivative Financial Instruments

The information regarding derivative financial instruments contained in Note 6, “Derivative Financial Instruments,” of the Notes to Consolidated Financial Statements of WellPoint and its subsidiaries is incorporated herein by reference.

4. Long-Term Debt

The information regarding long-term debt contained in Note 13, “Debt,” of the Notes to Consolidated Financial Statements of WellPoint and its subsidiaries is incorporated herein by reference.

5. Commitments and Contingencies

The information regarding commitments and contingencies contained in Note 14, “Commitments and Contingencies,” of the Notes to Consolidated Financial Statements of WellPoint and its subsidiaries is incorporated herein by reference.

6. Capital Stock

The information regarding capital stock contained in Note 15, “Capital Stock,” of the Notes to Consolidated Financial Statements of WellPoint and its subsidiaries is incorporated herein by reference.